Reverse repos worth 140b yuan to mature this week

BEIJING - Reverse repos worth 140 billion yuan ($19.8 billion) will mature in China this week, according to financial information service provider Wind Info.

On Tuesday, 80 billion yuan of reverse repos will mature. Another 60 billion yuan will mature Wednesday.

Reverse repos enable the central bank to purchase securities from commercial banks, with an agreement to sell them back in the future.

The People's Bank of China injected 290 billion yuan into the banking system through reverse repos and the medium-lending facility (MLF) last week, up from 270 billion yuan in the previous week.

On Sept 7 and Sept 17, MLFs worth 176.5 billion yuan and 265 billion yuan will mature, respectively, according to Wind Info.

China's central bank increasingly relies on open-market operations, rather than changes in interest rates or reserve requirement ratios, to manage liquidity in a more flexible and targeted manner.

China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.